South Asian Business news and information

Nepal is going to receive a financial assistance of NRS 16 billion from World Bank for reducing poverty and developing rural infrastructure including irrigation and road expansion. The grant will be confirmed during the Nepal Day celebration on 6 December at the WB head office in Washington DC. World Bank Vice President for South Asia, Praful Patel has recently participated in WB’s South Asia Senior Management meeting in Kathmandu. He assured that the financial assistance to Nepal will be increased in 2008. Moreover, he also stated that the international assistance could be double if Nepal could hold free and fair elections.

Kantipur Online reported:

"It is the biggest grant assistance package the bank's board is extending to Nepal at a go," Patel told the Post, adding that the assistance would be provided for the Poverty Alleviation Fund (PAF), irrigation and road expansion.

He added that international assistance to Nepal could even double if the country managed to hold free and fair elections.

Patel further said that the WB was also discussing providing additional budget to Nepal. "This, however, will come with conditions," he said, adding that reform in labor laws was the foremost condition for Nepal to get the additional assistance.

No doubt, getting such assistance will boost up Nepal’s economy. With the infrastructural development in rural areas, Nepal will be able to attract more foreign investment in the country which will positively contribute to its GDP. Now, the question remains that if Nepal government can ensure best use of this assistance and implement development projects across the country.

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